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Does Employment Protection Inhibit Technical Diffusion? Author info | Abstract | Publisher info | Download info | Related research | Statistics Roberto M Samaniego
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I ask whether differences in labor market performance between the US and Europe can be attributed to an interaction between employment protection legislation (EPL) and an acceleration in the rate of capital-embodied technical change associated with the advent of information technologies. I find that EPL is associated with a slowing in the diffusion of new technologies. I also find that an acceleration in the rate of embodied technical change has a negligible effect on employment in an undistorted economy. In addition, in the presence of EPL, employment decreases in the long run after such a shock
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Paper provided by Society for Computational Economics in its series Computing in Economics and Finance 2004 with number
51.
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Date of creation: 11 Aug 2004Date of revision:
Handle: RePEc:sce:scecf4:51Contact details of provider: Email: Web page: http://comp-econ.org/ More information through EDIRC
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Keywords: embodiment vintage capital dismissal costs employment protection information technology Other versions of this item:
Find related papers by JEL classification: J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy
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